Czech official confirms no financial support from Korea for nuclear power plant

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Czech official confirms no financial support from Korea for nuclear power plant

Published: 29 Nov. 2024, 13:48 Updated: 29 Nov. 2024, 13:55

Tomas Ehler, deputy director general for energy and nuclear sources at the Ministry of Industry and Trade of the Czech Republic, speaks during an interview with Yonhap News Agency in Seoul on Thursday. [YONHAP]

A senior Czech official in charge of nuclear energy said that financial support from Korea was “not on [the] agenda” for his country's nuclear plant construction projects, dismissing speculation that the Seoul government might have offered such assistance in a bid to win the country's multibillion dollar nuclear deal.

“This issue is not on [the] agenda now,” Tomas Ehler, deputy director-general for energy and nuclear sources at the Ministry of Industry and Trade of the Czech Republic, said during an interview with Yonhap News Agency in Seoul on Thursday.

Ehler's remark came after a Korean consortium, led by the state-run Korea Hydro & Nuclear Power (KHNP), was selected as the preferred bidder in July to build two reactors at the Czech Republic's Dukovany power plant.

If finalized, the deal, estimated at 24 trillion won ($17.1 billion), would mark Korea's first overseas nuclear power plant project since 2009, when KHNP won the Barakah nuclear power plant contract in the United Arab Emirates.

There has, however, been speculation that the Korean government may have promised to offer financial support during the bidding process.

“The financial model for the first unit is approved by the government, and the state aid is approved by the European Commission,” Ehler said when asked if the ongoing nuclear plant construction project would require low-interest loans or other types of financial support from Korea.

“For the second unit, the financing model is being finalized,” he said, noting that he expects to replicate the model for the first unit, which includes a loan from the Czech government.

Ehler added that the progress remains on track for the final signing, scheduled for March.

“We have information that the process is well on track, and March 2025 is still the target,” he said. “We also support the significant involvement of Czech industry in the project and nuclear energy industry cooperation.”

In regard to a potential hurdle for the project, namely a legal dispute between KHNP and U.S.-based Westinghouse, Ehler said that while not directly involved, the Czech government has “requested both parties solve the dispute and has been supporting this process actively.”

The official added that KHNP, as an engineering, procurement and construction contractor, “will be responsible for any potential negative impacts on the project stemming from this dispute.”

Ehler also noted that while price played an important role in choosing the Korean team for the project, it was “not the only factor that was taken into consideration.”

“These criteria included all relevant topics to the project, such as technological specifications, transportation, operation and maintenance, fuel requirements, time schedule, project management, pricing and others,” he said.

“Korea has been constructing nuclear power plants continuously for more than 40 years. The construction projects are well managed and executed. We believe that Team Korea is well prepared and experienced to deliver the project on time and on budget,” Ehler said.

The Czech official added the European nation wishes to “move quickly forward” not only in the nuclear energy industry, but also in chips, transportation, batteries, hydrogen production and other areas.

Yonhap